New Zealand Competition Regulator Delays Verdict On AXA Acqusition

Post by NeilMc on June 14, 2010 · Under Business News, Company News, Mergers & Acquistions, banking · Comment 

After seeing its initial bid first rejected by the AXA Asia Pacific Holding (APH) independent directors, and then having its bid trumped by rival bidder NAB, Australian wealth manager AMP’s attempt to woo APH has hit yet another road block, after New Zealand’s competition regulator delayed delivering its verdict on the proposed acquisition by another two weeks.

The New Zealand Commerce Commission has postponed its giving its decision on the acquisition until June 25th.

AMP has proposed to acquire APH for a consideration of $12.85 billion, a bid that was later trumped by rival bidder NAB, who tabled a $$3.29 billion bid.

The Australian Competition & Consumer Commission failed to bestow its blessing for NAB’s higher bid over competition concerns in the retail funds sector.

“Allowing NAB and Axa to merge would significantly diminish incentives to compete for retail investment platforms used by investors that have complex financial needs,” ACCC chairman Graeme Samuel said in April.

In response to the negative verdict, NAB has begun negotiation with the Australian competition regulator over divestment of APH’s North investment platform, in order to allay some of the regulators concerns.

AMP has made the case that its acquisition of APH would fail to have a substantial impact on competition, as a result of a large number of independent rivals that would remain, and has therefore not submitted a higher bid for APH.

AMP argues that its acquisition would result in the creation of a fifth pillar in Australian financial services.

Earlier this month, Axa APH and its Paris-based parent Axa extended an exclusivity agreement with NAB until July 15 to give the bank more time to negotiate with the ACCC.

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